VIPS Earnings: Vipshop Soars on Impressive Q4 Performance
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VIPS Earnings: Vipshop Soars on Impressive Q4 Performance

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2023 proved to be the most profitable year ever for Vipshop. The company’s focus on value-for-money offerings continues to pay off.

Vipshop (NYSE:VIPS) shares jumped by over 4% in the early session today after its fourth-quarter results blew past estimates. The company is a major online discount retailer in China.

In Q4, Vipshop’s net revenue increased by 9.2% year-over-year to $4.9 billion, handily outpacing estimates by $240 million. Similarly, earnings per American Depository Share (EPADS) of $0.75 exceeded expectations by $0.05. In comparison, VIPS had posted an EPADS of $0.51 in the year-ago period.

Further, its GMV (Gross Merchandise Value) ballooned by 21.9% year-over-year to RMB 66.4 billion. For the full year, VIPS’ number of active customers rose by 3.9% to 87.4 million and total orders increased by 9.8% to 812.3 million. The company is witnessing robust gains in the apparel category. Additionally, its focus on merchandise expansion and delivering value to customers is leading to a healthy momentum in user numbers.

While 2023 proved to be the most profitable year for Vipshop ever, the retailer is keeping its sights on maintaining operational discipline. Vipshop’s cash and cash equivalents at the end of December 2023 stood at $3.7 billion. For the upcoming quarter, Vipshop estimates net revenue in the range of RMB 27.5 billion to RMB 28.9 billion. Earlier, the company announced a dividend of $0.43 per ADS. The VIPS dividend is payable on April 8 to investors of record on March 15.  

What Is the Target Price for VIPS Stock?

Today’s price gains come on top of a nearly 17% rise in Vipshop’s share price over the past year. Overall, the Street has a Moderate Buy consensus rating on Vipshop alongside an average price target of $20. However, analysts’ views on the stock could see changes following today’s earnings report.

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